IQ Investment Quarterly
Client Alpha - New Advisory Model
Investors have faced a daunting investment environment for the last decade, marked by sluggish growth, low interest rates and policy uncertainty. However, even as we pivot away from a lower-for-longer interest rate regime, institutional investors will still require more complex, scalable solutions to achieve their long-term investment objectives. The shift toward outcome-oriented, multi-asset class solutions rather than relative-performance objectives alone is not only changing how investors view the value drivers in their portfolios, it is also changing the nature of the relationship between asset owners and asset managers. The challenge for a growing number of institutions in a resource-constrained world is “doing more with less”: finding ways to improve upon muted market returns, extracting more value from the fees they pay, and supplementing limited internal investment resources with fresh thinking and actionable perspectives from their asset managers. SSGA’s Deputy Global CIO Lori Heinel and Investment Solutions Group CIO Dan Farley recently discussed the evolution of investor needs and how that is transforming investment solutions and engagement models with Ian Patrick, CIO of Sunsuper, one of Australia’s largest superannuation pension plans, and Andrew McCollum, head of Greenwich Associates’ North American investment management practice and the lead author of a new report on the future of active management.1
1 Andrew McCollum et al., “Is There a Future for Active Management? How Active Managers Will Thrive in a Maturing Industry,” Greenwich Associates, Q4 2016.